Your loan will be discharged (forgiven) if:
- Your Federal Loan servicer determines that you are totally and permanently disabled (as defined in accordance with the laws and regulations that govern the Direct Loan Program), and you meet certain other requirements, or
- Your Federal Loan servicer receives acceptable documentation of your death.
Other Loan Discharge Conditions
All or a portion of a TEACH Grant that was converted to a Direct Unsubsidized Loan may also be discharged (forgiven) under certain other conditions, as explained in your TEACH Grant Agreement to Serve (ATS).
Teacher Loan Forgiveness Program
If you do not meet the requirements of the TEACH Grant Program and your TEACH Grant is converted to a Direct Unsubsidized Loan, you may have up to $17,500 of your loan balance forgiven if:
- You did not owe a Direct Loan or FFEL program loan as of October 1, 1998 or as of the date you obtained a loan after October 1, 1998; and
- You teach full time for five consecutive complete academic years in certain low-income elementary and/or secondary schools or educational service agencies and meet certain other qualifications.
To request loan forgiveness under this program, you must complete a loan forgiveness application that you may obtain from your Federal Loan servicer.
Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness program is available under which you may qualify for cancellation of the remaining balance due on your eligible Direct Loan Program loans after you have made 120 full, on-time monthly payments (after October 1, 2007) on those loans under certain repayment plans while employed full time in certain public service jobs. You may not apply for loan forgiveness under this program until after you have made all 120 qualifying monthly payments.
For more information about the Public Service Loan Forgiveness Program, please see the Useful Resources section at the end of this counseling session.